Tryingtobalance it is a tough spot. However I would not recommend making any purchase on a home especially if if means giving up your emergency money. It just makes no sense. I have been renting for the past 3 years and I can admit freely that it sucks 100% but that is just me. Others love it and have no problem. However if there is a question about employment then I just cannot promote purchasing a home.
I think that it is a tough spot you are in for the rental. Honestly if it were me I would consider short selling it or walking away and just take the hit on the credit. I know that will screw you for a few years but there are a whole lot of people in that boat. Also if you just put the pedal to the metal and save money like crazy, then perhaps your credit return will be coincident with a high rate environment where cash will be king. So maybe in 3 years you are riding high with 250k in cash and a return of acceptable credit.
Now the bitter part of me may say go ahead and buy now, then let the tempe home go into foreclosure. I know people who have done that… Yes you can do that. Also if your hubby lost his job you could depend on the govt or bank not to foreclose but that is a pretty big risk and one I would not take. So if you do go that route you should put as little cash down as you can.
Another possible route is to go to a bank and see if you can get a bridge loan… That is, if you don’t wanna see the 40k go out the door, you sell the Tempe condo, then get a loan to pay off the 40k. The loan would be unsecured and probably not be a great rate, but at least you would be morally culpable and not losing that extra 40k nut and keep your credit intact. Also that would be one less loan that my tax money doesn’t backstop but what the hell difference does one more make…
Anyways yes it is a tough tough choice. Getting a 400k home in RB is tough these days. Are you thinking Westwood? Prices have jumped there over the past 6 months. It may be best to sit tight, continue to rent, and let them come back to you in an undetermined amount of time.
